UK pensioners set to lose £240 per year

Recent Government austerity measures mean that UK pensioners will be light in the pocket by an estimated £240 each year.

New research by the Institute of Fiscal Studies has shown that factors such as increased VAT, fuel duty and benefits cuts are all contributing to the increased costs that pensioners now face. These projections account for losses up to 2013, it is believed that by 2014 this figure will rise to £367 per year.

This further expenditure will be because of cuts such as a reduction to Winter Fuel Payments, increased costs for alcohol and tobacco and a reduction to disability benefits.

This news comes just as the UK government has finally confirmed that the Default Retirement Age will be phased out this year.

This means that pensioners are now being encouraged to work beyond the current age for retirement in what the Department for Business calls “a boost to the UK economy.”

It also means that businesses and companies will no longer be able to release employees who pass the age of 65 simply on account of their age.

These factors suggest that UK pensioners will be under more pressure than ever before to continue working into their retirement years.